Al Jarda Co. the following data related to its mixed costs, using miles as the activity level. Miles Driven Total Cost January 9,000 OMR 17,000 February 8,000 12,500 March 10,000 14,400 April 7,000 13,500 Compute the variable and fixed cost elements using the high-low method
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- The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $100,000 3,500 61,000 2,000 85,000 2,600 78,200 2,450 91,000 3,000 110,400 3,900 106,000 3,740 93,000 3,380 a) Calculate the variable cost per hour b) Calculate the total fixed costs c) Write the equation which measures the cost behavior of the costs d) Calculate the operating costs for 3,750 hours.High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the t cost. The data for various levels of production are as follows: Units Produced Total Costs 2,100 3,770 5,600 $245,700 332,790 382,200 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input answers in the questions below. X Open spreadsheet a. Determine the variable cost per unit and the total fixed cost. Variable cost $ Total fixed cost $ 36 X b. Based on part (a), estimate the total cost for 2,770 units of production. Total cost for 2,770 unitsUsing the data in E4-2 and spreadsheet software, determine: The variable cost per unit, the total fixed cost, and R2. The plotted data points using the graphing function. Compare the results to your solutions in E4-2 and E4-3 and explain the reasons for the results.
- Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Refer to the information for Speedy Petes above. Speedy Petes controller wants to calculate the fixed and variable costs associated with its cutting-edge delivery service. Required: Using the high-low method, calculate the fixed cost of deliveries, calculate the variable rate per delivery, and construct the cost formula for total delivery cost. Use the following information for Brief Exercises 3-26 through 3-29: Speedy Petes is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: X Open spreadsheet 105,000 118,000 134,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Variable cost: Total fixed cost: Units Produced a. Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar. Total Costs per unit Total cost for 86,000 units: $30,307,500 32,745,000 35,745,000 b. Based on part (a), estimate the total cost for 86,000 units of production. Round your answer to the nearest dollar.Given the following information, choose the cost and activity that would be used as the high data point in high-low cost estimation: Costs (P) Activity (hours) 48 000 41 500 49 000 42 000 57 000 42 500 56 000 43 000 55 000 43 500 O P57 000 and 43 500 hours O P55 000 and 43 000 hours O P55 000 and 42 500 hours O P55 000 and 43 500 hours O P57 000 and 42 500 hours O P56 000 and 43 500 hours
- Choose the correct letter of answer On a scattergrap, the diagonal line cuts across two sets of observations, namely: 600:200, and 900:500 which refer to costs and units, respectively. The fixed costs is plotted in the graph at P400. In this case, the variable cost per unit is equal to: a. P1.00b. P1.25c. P1.50d. P1.12DESCOR High-low method Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 1,150 2,020 3,450 $169,740 229,900 264,040 a. Determine the variable cost per unit and the total fixed cost. Variable cost s Total fixed cost s b. Based on part (a), estimate the total cost for 1,660 units of production. Total cost for 1,660 unitsUsing High-Low to Calculate Fixed Cost, Calculate theVariable Rate, and Construct a Cost FunctionRefer to the information for Speedy Pete’s above. Speedy Pete’s controller wants to calculate thefixed and variable costs associated with its cutting-edge delivery service.Required:Using the high-low method, calculate the fixed cost of deliveries, calculate the variable rate perdelivery, and construct the cost formula for total delivery cost
- 4. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation eege d) Cost $100,000 61,000 85,000 78,200 91,000 110,400 106,000 93,000 Hours 3,500 2,000 2,600 2,450 3,000 3,900 3,740 3,380 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behaviour of the costs Calculate the operating costs for 3,750 hours.The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The vertical axis represents total cost, and thehorizontal axis represents activity output. Required:For each of the following situations, choose the graph from the group a-1 that best illustrates the cost pattern involved. Also, for each situation,identify the driver that measures activity output. 1. The cost of power when a fixed fee of $500 per month is chargedplus an additional charge of $0.12 per kilowatt-hour used2. Commissions paid to sales representatives. Commissions arepaid at the rate of 5 percent of sales made up to total annual salesof $500,000, and 7 percent of sales above $500,000.3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased inexcess of 3,000 units.4. The cost of surgical gloves, which are purchased in incrementsof 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition at a…Based on the behavior shown in the following table, which of the following is a variable cost? Units Produced a. Cost Per Unit of Materials b. Cost Per Unit of Labor c. Total Utilities Cost 2 3 4 5 500 500 500 500 500 333 250 200 4,500 4,500 4,500 4,500 Multiple Choice Cost Per Unit of Materials Cost Per Unit of Labor Total Utilities Cost Both the cost per unit of materials and the total utilities cost are variable costs. x
